The National Association of Homebuilders (NAHB) [1] found just 10% of respondents in Q1 2020 are looking to buy a home.
This is a month-over-month decline from 11% during Q4 2019 and 13% in Q1 2019. The NAHB said data was collected during March 17-28, which was during the early stages of COVID-19.
When breaking it down across age groups, prospective buyers among Gen Zers fell from 20% in Q1 2019 to 13% in Q1 2020. The share of millennials looking to buy a home grew year-over-year to 16% from 15%.
The west and south regions were found to have the most prospective buyers, with 11% responding they were looking for a home over the next year.
Additionally, 61% of buyers in Q1 2020 will be first-time buyers, which is a minimal increase from Q1 2019’s 60%.
Also, during Q1 2020, homebuyers were less likely to think housing availability will get harder or stay the same (62%) than a year earlier (67%). Twenty-five percent expect to find the right home will get easier in the month ahead, which is up from 22% from last year.
The report also found that 31% of buyers in Q1 2020 reported seeing more homes for sale than in the three months earlier, which is a slight increase from the year-earlier (30%).
A recent survey by the National Association of Realtors (NAR) [2]revealed that the majority of realtors believe buyers and sellers will return to the market at the conclusion of the COVID-19 pandemic.
NAR states that nearly six of 10 members (59%) said buyers are delaying home purchases for a couple of months. Fifty-seven percent said sellers are delaying home sales for a couple of months.
Fannie Mae’s latest Home Purchase Sentiment Index (HPSI) [3] dropped 11.7 points in March to 80.8—the lowest reading since December 2016.
Five of the six HPSI components declined month-over-month, including the number of consumers concerned about losing their job over the next year. Fannie Mae also says consumers also reported homebuying and selling conditions have worsened and they have a “more pessimistic” view of home-price growth.
The HPSI is down 9 points year-over-year.